Abstract
This paper aims to plan an improved system on cost analysis, which can generate a more relia-ble report to locate cost variance, in order to conduct effective adjustments.With the focus on cost structure, this study constructs the cost management within every step of the process flow to achieve the efficiency of cost analysis. The cost analysis framework in this study firstly employs quality fuction deployment (QFD) to learn users' expectations. Further the study suggests an information platform to be established, the design of which has to base on the correlative factors of machine, product and material. Standard material usage in correspondance with Activity Based Costing (ABC) also has to be set to help build an ideal model that better manages the cost and ultimately creates a feedback on cost im-provement. A real case was studied to examine the application validity of the strategy mentioned above. After implementing the proposed methodology, it monitors precisely the cost flow, and therefore forms an efficient cost tracking system, as to develop a guide of the standard cost.